China LNG Equipment Prosperity Promoted by Openness to Private Investors

www.chinaspv.com: On 21st May, China National Development and Reform Commission released the first demonstration projects which allow the private sector involved, including 10 projects related to oil and gas pipeline network as well as associated storage devices. Apart from mid-course of West-Ease Pipeline and Four Pipelines between Shaanxi and Beijing, LNG receiving stations and peak shaving terminals are concerned among the above. By far, marine and mainland pipelines take up a half each other in the importing style of China’s natural gas.
 

As for oil and gas field, pipeline network and LNG project construction are regarded both as equally important, therefore PretroChina and Sinopec launch projects such as LNG peak shaving terminals of Shenzhen and Fubei and Tianjin LNG receiving stations respectively. Due to high profits of domestic projects, oil giants concentrate those items, actively in action. In 2014, many domestic LNG projects plan to put into production, with annual output of up to 20 billion cubic meters overall, which will certainly push the market demand on the downstream equipment.

In the respect of China’s market operation of natural gas, PretroChina undertakes losses or slight profits for its imported pipeline generally for gradual adjustment of price scheme while companies such as China National Offshore Oil remain profits, benefiting from long-term LNG contract with Indonesia and Australia. The latter has the purchasing contract with Indonesia for LNC terminals in Fujian, with term of 25 years. Meanwhile, it contributes to the risk reducing to import LNG from different countries in the view of gas sources supply guarantee.

In addition, Sinoma Science & Technology Co., Ltd. owns its main business of wind blades, aggressively laying out of natural gas cylinders for vehicles. It has manufacturing capacity of 10,000 units LNG products and another 30,000 units under construction. EAST New Energy Development Co., Ltd. is a waste heat recovery power provider, also running the business of gas sales and LNG industry chain, increasing the investment of Hainan Yaxi investment Company for LNG gas stations and the markets of oil convert to gas. Zhangjiagang Furui Special Equipment is a LNG application equipment maker with the complete industry chain, containing automobile LNG cylinders and storage devices. In 2013, the sales volume of LNG cylinder arrives in 45,000 sets and around 200 units of LNG stations.

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